10:14 16.02.2017

Roshen seeks to finish biscuit workshop construction near Boryspil by late 2017

2 min read
Roshen seeks to finish biscuit workshop construction near Boryspil by late 2017

Construction of a biscuit workshop of the Roshen Corporation near Boryspil (Kyiv region) could be finished by the end of 2017, Roshen President Viacheslav Moskalevsky has said in an interview with Interfax-Ukraine.

"I think that construction will be finished at the end of this year. Then we will launch one test line," he said.

The cost of the construction project is estimated at UAH 1.5 billion.

"The workshop is being built using another principle that that used for construction of the factory in Kyiv. It will be a single store building, while Kyiv factory is a many-storied building. Now no one in the world bakes biscuits on three floors," he said.

Kyiv confectionary factory will produce only cakes. Moskalevsky said that its building could eventually become a museum or an office.

In 2016, Roshen retained sales in Ukraine at the level of 2015 (220,000 tonnes).

"We sell 65% of our products in Ukraine and 35% is exported. The share of EU sales is 5% of total sales. We have not been exporting anything to Russia since 2013… Before 2013, the Russia's share of total exports was 58%," he said.

Now the company continues looking for new markets after the closure of the Russian market.

"Our supplies to the CIS plunged, but we compensated it by growth [of shipments] to the EU, Middle East and slightly increased sales in Ukraine. We finally broke even," Moskalevsky said.

He said that delivery of Ukrainian confectionary products to the CIS and Central Asia bypassing Russia affected their price. High ferry tariffs of Ukrferry also impact the price of goods.

Roshen, one of Ukraine's largest makers of confectionaries, has confectionary factories in Kyiv, Mariupol (Donetsk region, under liquidation), Kremenchuk (Poltava region), two in Vinnytsia, one in Lipetsk, one in Klaipeda, Lithuania, and one, BonbonettiChoco, in Hungary. The corporation also owns the Bershadmoloko dairy plant and Litynskplemzavod, both in the Vinnytsia region.

The corporation's owner is Ukrainian President Petro Poroshenko. An agreement was signed in January 2016 whereby Poroshenko transferred his share in the corporation to an independent blind trust. The trust's managing bank also has a four-year power of attorney to negotiate a sale of the assets. Moskalevsky holds 13% via Konditerinvest fund and four top managers hold 0.5% each.

AD
AD
AD
AD
AD